If Morgan Stanley finds itself with a three notch downgrade, it will be staring right in the face of a required $10 billion margin call. That’s 1/3 of their market cap. I love the smell of annihilation in the afternoon.

10
posted on 06/21/2012 1:46:23 PM PDT
by RobertClark
(Be prepared, be polite, be professional and have a plan to kill everyone you meet.)

This is why the pressure is on Merkel to buy bonds from the PIGS. Private banks already are overloaded. Any write offs or default are going to kill them. And, given that we are part of a World Economy, it cannot be walled-off from the US economy.

As things have progressed the last four years it has become more and more clear that none of these authorities knows what to do. Just like in the early 1930s the monetary and financial institutions blindly move from one ineffectual policy to another. And political considerations prevent them from taking a course and sticking with it which might even work. But moving back and forth between prescriptions just makes the disease worse.

We’ve been throwing away millions, and billions, and trillions for so long.... “They” have us ordinaries thinking there is a bottomless pit of millions, and billions, and trillions, somewhere!
MAYBE, if we could actually see SOMEBODY actually crash and burn, we ordinaries could get perspective on what’s happening, some real life connection or sense of actual worth of these vast amounts of dollars.
None of us could play these games with a few thousand dollars, and not be in jail.

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